Mumbai (Maharashtra) [India], March 17 (ANI/PRNewswire): Portfolio management company Basant Maheshwari Wealth Advisers has launched a new smallcase 'BM Nifty Top 20' that mirrors the constituents of the Nifty 50.
"The smallcase has been built keeping in mind the lower risk appetite of small investors that have lower capital and who want to beat the Nifty 50 and an average mutual fund over a longer-term time horizon. This has been initiated after umpteen requests made by our YouTube subscribers to have a portfolio that meets their risk and return objectives. We have kept the cost in check and ensured that these large-cap growth names exhibit better returns with lower volatility," said Basant Maheshwari, smallcase manager and Co-founder & Partner at Basant Maheshwari Wealth Advisers LLP.
Sectors in focus
Financials is the highest overweight sector about 43 per cent allocation. Both private sector banks and NBFCs have gained market share from PSU banks over the last decade and this structural shift is expected to continue for the next decade as well.
Consumers are roughly 15 per cent of the overall portfolio which will gain from the rise of Indian middle-class consumption as India's per capita income increases over the next decade.
IT services is 10 per cent of the portfolio which will benefit from long-term structural factors like offshoring of IT services to low-cost and largest skilled manpower present in India. These companies are hugely profitable and have the scale and size to benefit from the increased focus on digitisation, automation and cost optimization drive of companies across the globe.
Excluded companies include:
- Revenue growth and EPS growth have been sub-optimal compared to the NIFTY 50
- Businesses which are cyclical and commoditized where there are no competitive advantages. However, we have some commodity players which are lowest cost producers and have efficient capital allocation policies.
- Companies that have corporate governance issues
The Nifty 50 is a diversified set of companies bunched together as an index. These companies originate from almost all conceivable sectors and stocks. Many of the Nifty constituents lack sustainable competitive advantages in the long run. They represent each corner of the economy. In the long run such companies may not do well but in the short run they are included in the Nifty as the business may be undergoing a cyclical upturn.
Basant Maheshwari Wealth Advisers LLP is a SEBI-registered portfolio management company (Registration Number - INP000004946). The firm focuses on investing in companies which have predictable and consistent earnings and can typically generate above-average earnings growth over longer periods of time. We offer portfolio management services on complete need analysis that are designed to meet an individual's requirements and financial goals.
Disclaimer: This is not investment advice or buy or sell recommendation. Readers should do their own research and analysis or consult an investment adviser before taking positions in any stocks or sectors or making any financial allocations. Equity markets can cause a complete loss of capital.
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